While creating a server in Palworld you must have encountered an option UNKO (unidentified nocturnal knock-off) and you can turn it off or on.
What is UNKO in Palworld?
As the game, Palworld was heavily inspired by ARK Survival Evolved and in Japanese where UNKO means poop. As of in Palworld there are two variables of UNKO which are UNKO_L (stands for large poop) and UNKO_S (stands for small poop).
So basically, UNKO (unidentified nocturnal knock-off) is the option for how much poop aka items your pals are going to drop in the ranch and you can even test it by turning it on and setting the max drop value between 50 and 100 and you will see any noticeable difference in the quantity of waster produced in the ranch.
You can play with the DropItemMaxNum_UNKO=100 try to keep it between 50 to 250 and see what works best for you
It doesn’t mean anything about knocked-out pals continuously doing work or anything like that.